On October 10, Grayscale Investments submitted a Form 10 registration statement to the U.S. Securities and Exchange Commission (SEC) for the Bittensor Trust (TAO), opening the door for this AI-focused crypto asset trust to move towards compliance and public market access. If approved, the private placement holding period for trust shares will be reduced from 12 months to 6 months, meaning early investors will have quicker liquidity and creating conditions for institutional fund entry.

A few days later, the U.S. listed company TAO Synergies Inc. (Nasdaq code: TAOX) announced the completion of a $11 million private placement, with investors including TAO strategic advisor James Altucher and Grayscale's parent company DCG. This news quickly boosted market confidence—over the past week, the TAO price surged from $290 to $457, a gain of over 50%.

Amidst AI becoming one of Wall Street's strongest narratives, TAO is gradually seen as a bridge between regulated finance and decentralized AI networks. With market sentiment soaring and trading activity increasing, TAO has not only become the "new target for AI" in institutions' vision but is also expected to hit a historical high since April 2024.

What Does Form 10 Mean

A so-called Form 10 is a registration document under Section 12(g) of the U.S. Securities Exchange Act of 1934, formally known as the General Form for Registration of Securities. When a trust or fund product submits Form 10 to the SEC and it is accepted, it indicates a transition from a "private placement trust" to a "SEC reporting company," requiring compliance with the same disclosure obligations as public companies—including regular submission of 10-K (annual report), 10-Q (quarterly report), and 8-K (current report). In other words, once Form 10 becomes effective, the TAO trust will be formally brought into the U.S. mainstream securities regulatory system for the first time.

Similar to Grayscale's Bitcoin Trust (GBTC) and Ethereum Trust (ETHE), the goal of TAO Trust is to land on the OTC Markets over-the-counter trading market, allowing traditional investors to directly allocate this asset through their brokerage accounts. Looking back at Grayscale's path: GBTC submitted Form 10 in 2019, followed by ETHE in 2020, and then both transitioned to spot ETFs. TAO's current move is progressing along the same trajectory.

For TAO, this move has three main implications:

Shorten the liquidity cycle. The holding period has been shortened from 12 months to 6 months, meaning that previously locked private placement shares can circulate more quickly in the secondary market, releasing funds for early investors and activating trading depth.

Open up compliance entry. Once registered, the trust can be quoted on the OTC Markets over-the-counter market, allowing traditional brokerages and family offices to invest in TAO in the form of securities without directly touching a cryptocurrency wallet or custody service.

Lay the foundation for ETFization. Grayscale has already validated the "Form 10 → ETF" path on BTC and ETH Trusts, with Form 10 being the starting point, paving the way for future exchange-traded products (ETPs) applications.

"TAO MicroStrategy" Strikes Again

On October 14, the U.S.-listed company TAO Synergies Inc. (Nasdaq symbol: TAOX) announced the completion of a $11 million private placement, with investors including TAO Strategic Advisor James Altucher and early supporter of Bittensor, Digital Currency Group (DCG).

The company, formerly a biotechnology firm Synaptogenix, completed a strategic transformation in July of this year and made its first purchase of 29,899 TAO tokens, worth approximately $10 million. As of now, TAOX has become the largest TAO holder globally, with all holdings included in the company's treasury and plans to stake the tokens on the Bittensor mainnet to participate in network computation and model training, earning long-term rewards. Since the transformation in July, the company's stock price has more than tripled, remaining resilient amidst a general pullback in DAT-type companies.

TAO Strategy Advisor James Altucher stated, "This funding round further solidifies TAO Synergies' long-term strategy, which includes not only holding and managing TAO tokens, but also creating income-generating and influence-accumulating opportunities within the Bittensor ecosystem. We welcome DCG's participation—it is a leader in the crypto industry and one of Bittensor's earliest supporters. We are confident in the future of decentralized intelligence and believe that Bittensor's network model will be a key driver of innovation and value creation in the coming years."

On-chain data shows that Bittensor's market share in DePIN (Decentralized Physical Infrastructure) has exceeded 33%. With institutional funds accelerating their deployment, TAO is gradually transitioning from a mere "AI concept coin" to a foundational asset with real network value and a cash flow model. The market widely believes that the dual action of TAOX and Grayscale is becoming a significant milestone in the institutionalization of the AI race track.

Summary

As Wall Street's enthusiasm for the AI narrative continues to rise, from Nvidia to OpenAI, and now to Bittensor, this AI wave is rapidly spreading to the crypto market, with TAO emerging as a core beneficiary. With dTAO's reshaped incentive mechanism and the upcoming halving, TAO is poised to once again challenge its all-time high of $1247. After Bitcoin's golden decade, the AI narrative may become the next capital consensus, with TAO standing at the starting point of this new era.

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